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GIRACT
Starch Industry Overview
Starch Italics
www.giract.com
Apprril /May 2011
Starch Italics Starch Industry Overview
Apr/May 2011 TABLE OF CONTENTS
Crops & Grains
p.1 S. Korea to set up global grain firm
Demand for corn falls
p.2 Cargill's Truvia Now no.2 Sugar
Substitute
Starch & Derivatives
p.3 Iowa companies named in ‗corn sugar‘
lawsuit
Cargill plans to convert corn wet mill into
bio-refinery campus
p.4 China levy anti-subsidy duties on EU
potato starch
Vitamins may hitch a protected ride on
corn starch
p.5 Xylitol for Antimicrobial, Cosmetic
Preservative
Ethanol merits federal support
p.6 Strategic Review of Corn Starch Industry
&Markets-Starch
Derivatives, Sweeteners & Co Products
p.7 Potato research tackles starch content and
pests
Petrobras says gasoline, ethanol prices to
fall
p.8 Fungus process makes ethanol production
more efficient
p.9 Composite Technical Services Introduces
Polycard XFN Bio-Based Polyols
ADM expands South American operations
Company News
p.10 DSM, Roquette to build commercial-scale
succinic acid project in Italy
ADM Starts bio propylene glycol
p.11 ADM to acquire Praire Pride Soy crush
and bio diesel plants
p.12 Tate and Lyle, Electrocomponents
p.13 DuPont building up biotech
Bio-Fuels
p.14 Cargill plans to convert corn wet mill into
biorefinery campus
China Set to Increase Use of Biofuels
p.16 Biofuels can provide up to 27% of world
ransportation fuel by 2050
p.17 Great Falls ethanol plant clears financing
Hurdle
p.18 Next generation of corn products
Entering market
p.19 Company eyes biofuel potential
p.20 Luverne ethanol plant to highlight market-
expanding technology
Renewable Energy In the Pond
Bio-Plastics
p.21 Bakery waste turned into alternative fuel
source
Bioplastics based on potato starch not
necessarily compostable
p.22 Plastics from algae not economic says
analyst
New Bioplastic Features Higher HDT,
Impact
Regional Language News
China
p.24 Food control overweight corn for deep
processing enterprises: "strictly limited"
purchase
Policy control: a rebound inhibition of
deep processing of corn consumption
Decrease of corn starch and potato starch
market price: inflation continued to
influence
p.25 April 26, 2011 corn pice in Heze,
Shandong
(Table of Contents Continued on next page)
Starch Italics Starch Industry Overview
Apr/May 2011 TABLE OF CONTENTS
GLOSSARY
bio ‗000 000 000
cpd cases per day
crore ‗0 000 000
JV Joint Venture
k ‗000
kt ‗000 tons
klpd kilo litres per
day
lakh ‗00 000
lpd litres per day
mio ‗000 000
M&A Merger
&Acquisition
pa per annum
t tons
tpa tons per annum
tpd tons per day
tph tons per hour
tpm tons per month
GIRACT Global Starch and Starch Derivatives study
Giract has just published new multi-
client research into global starch
supply, examining in particular the
impact of the recent economic
downturn on the industry. Details on
the following page.
Regional Language News (Contd)
p.28 2010 Sugarcane, cassava, cocoon
production ranked first in the country
Russia
p.29 Bioethanol production in Kyrgyzstan
Biofuels aggravates hunger
p.30 Ukrainian distilleries stimulate the
production of biofuels
p.31 Russia starts production of ethanol in the
next two years
Indonesia
p.31 PTPN X bioethanol plant operation
schedule 2012
Spanish
p.32 The Brazilian government wants
Petrobras controls ethanol prices
Ethanol demand falls for 1st time in 11
years
Steady supply of corn price increases
sufficient demand is not easy
Portuguese
p.34 Minimum proportion of ethanol in
gasoline falls
GIRACT
Starches and Derivatives Impact of the economic downturn Global Production and Supply 2009/10 – 2015
INTRODUCTION The starch industry is one of the world’s largest transformers of agricultural raw material, producing 73 million tons (expressed as primary starch with 12% moisture). For 30 years the starch industry has posted a remarkable average 4% annual growth and shown great flexibility to adapt to changes and opportunities, from raw material sources and changing trade regulations to new production technologies and end-use sector dynamics.
Since 2007, this dynamic has changed abruptly for several reasons:
High demand for agricultural raw materials by the fast growing Asian economies coincided with new competition from the bio-energy boom, especially in USA, leading to a record high in raw material cost
High ingredient costs forced the food industry to undertake a strong cost-cutting drive, and even though starch and their derivatives were earlier seen as ‘low-cost’ ingredients, they have now become a target for replacement in several end-uses
Starch production in Asia continued to expand, fuelled by strong local consumption especially in China, while European players were facing more blows from the ongoing CAP reform in the sugar and potato starch sectors
The economic recession affected starch demand as never before and in almost every end-use sector; e.g. the European paper industry saw a decline by 40% and with enough new mills in low wage countries, this demand in Europe may never be recovered.
Thus, the traditional patterns in starch production and demand have changed dramatically and so did the competitive landscape. The dominant position of Western players and markets is being eroded, both in terms of product portfolios and players and China has emerged as the largest country for supply and demand of starch. Cost-effectiveness and clean labelling have been driving changes in demand.
As these new patterns are emerging, it is the right time for every player and end-user in this field to take stock of new opportunities and threats before making any strategic decisions. This report provides the necessary comprehensive picture of actual global starch production and trade, by product and area, and explores which key factors are likely to influence the future to 2015.
Giract, the ingredients and technologies specialist and leader in market analysis of starches and their derivatives, published landmark studies in ’95, ’00, ’04 and ‘07 which pulled together starch supply by type of raw material and player across the world. These studies have been a reference for all players in the industry and for key end-users. The present update, published in autumn 2010, takes into account the various changes that have occurred across the world in the last few years, and thus acts as an important tool in your strategic planning.
OBJECTIVES • To identify starch and derivative production
- by key country/region - by type of raw material - by type of starch and starch derivative - by key producer • To evaluate trade patterns of different types of starches and derivatives • To estimate availability of starches and derivatives by key country/ region and of starch by type of raw material • To forecast global trends in starches and derivatives to the year 2015
PRODUCTS Primary starch from different raw materials, including maize, wheat, potato and tapioca. Finished products as starches (native and modified) and starch derivatives (glucose syrup, high fructose syrup, dextrose, other hydrolysates and polyols)
MARKETS Global
TIMESCALE 2009/10 and 2015
REPORT Published September 2010
SUBSCRIPTION Please contact us for subscription details
For more info, contact GIRACT V. Krishnakumar, Jo Goossens
24, Pré-Colomb Tel: + 41 22 779 0500
1290 Versoix/Geneva Fax: + 41 22 779 0505
Switzerland [email protected]
www.giract.com
Apr/May 2011 www.giract.com Page | 1
Starch Italics Starch Industry Overview
Crops & Grains
S. Korea to set up global grain firm
South Korea will officially launch an international
grain procurement company next week to ensure a
steady supply of staple farm products, a state-run
farm trade company said. The Korea
Agro Fisheries Trade Corporation has been
pushing for a new company to better insulate the
country from sudden fluctuations in grain prices
that can adversely affect domestic production and
inflation. The public corporation said Samsung
C&T Corp., Hanjin Shipping Co. and STX will
join as partners and invest in the company on
April 29. The company is to be set up with an
initial capital of USD 2.5 mio.
The agro-fisheries corporation will take charge of
overall management of the procurement company
to be set up in Chicago, with Samsung focusing
on marketing. STX and Hanjin are to handle
transportation of grain products. Company
executives stressed that the new company does
not plan to compete with such major grain
handlers as Cargill and ADM, but wants to look
for unexplored niche markets.
For 2011, the envisioned company will try to
import around 10kt of beans and corn, with the
numbers to go up to 4 mio t or roughly 30% of the
country's grain requirements by 2015, the
state run firm said. South Korea needs an average
of 20 mio t of grains, such as rice, wheat, corn and
beans per year. It produces around 4-5 mio t of
rice, which is sufficient to meet local demand, but
must import most other products.
(english.yonhapnews.co.kr April 22 2011)
Demand for corn falls
The fast rise in food prices could begin to taper
off later this year. The government‘s latest crop
report estimates that the domestic supply of corn,
which had been forecast to shrink, will grow in
the months ahead The Department of Agriculture
report suggested that the high price of corn is
prompting ranchers and feed makers to use less
and farmers to plant more. (Continued in next
column)
Demand for corn falls (Contd) Analysts expect these trends to push corn prices
lower, and this could ultimately make everything
from beef to cereal to soft drinks less expensive at
the supermarket. Corn prices fell sharply last
week as part of a broader sell-off in commodities
They dropped 30 cents, the maximum allowed in
one day, to USD 6.77/bushel. The USDA
estimates corn exports will drop by about 50 mio
bushels this summer. At the same time, farmers
are planting more of it. By late August, when the
harvest begins, the USDA expects the nation‘s
corn supply to be 730 mio bushels, enough to
satisfy demand for 20 days. That‘s an 8% increase
from last month, when an 18-day supply was
forecast by August. By 2012, the supply is
forecast to grow to 900 mio bushels, enough for
24 days. A 30-day supply is the level considered
healthy by most investors.
The forecast doesn‘t guarantee an end to tight
grain supplies. And it might not account for all the
damage caused by a recent spate of extreme
weather in South. Flooding along the Mississippi
has already swamped more than 1.4 mio acres of
corn, cotton, soybeans and rice in Tennessee and
Arkansas alone, said a commodities analyst with
Telvent DTN.
Farmers will likely replant on the soggy soil, but
they‘ll be behind their normal growing schedule.
That could hurt yields. With Southern states
bracing for yet more flooding the USDA
projections for this year‘s crop could turn out to
be too rosy, he said. Corn prices have more than
doubled since last summer because demand from
ethanol producers and overseas consumers has
grown faster than supply and hit an all-time high
of USD 7.76 on April 11.
Prices have fallen steeply over the last week as
investors sold off their contracts for commodities
from oil to copper, worried that demand for
metals, grains and fuel will stay weak
(Continued on next page)
Apr/May 2011 www.giract.com Page | 2
Starch Italics Starch Industry Overview
Crops & Grains
Starch & Derivatives
Demand for corn falls (Contd)
The government report suggests the high prices
are finally curbing demand, at least overseas.
Corn exports are likely to decrease by about 3 mio
bushels a week until August. The bulk of
U.S. corn exports go to the overseas livestock
industry, where it is used as a feed. With corn
getting so expensive, ranchers and feed suppliers
cut back their orders and are substituting cheaper
wheat rations for corn.
Corn is used to feed cattle, pigs and chickens and
is a major ingredient in cereals and soft drinks.
But it can take months for high crop prices to
work their way to grocery-store shelves. That‘s
because food processors and grocers are slow to
pass on the savings to consumers after to food
industry swallowed higher costs for months.
(lubbockonline.com May 14 2011)
Cargill's Truvia Now no.2 Sugar Substitute
Truvia, Cargill's no-calorie sweetener made from
the stevia plant, recently surpassed Sweet 'N Low
to become the no. 2 sugar substitute in the
country, according to AC Nielsen. The
two-year-old brand had a 12.8% share of tabletop
sugar substitute sales in U.S. food/mass/drug
retailers for the four weeks ending
March 19, 2010 -- still small next to Splenda's
approximately 60%, but growing by leaps and
bounds. Truvia surpassed Equal's share of the
substitutes market last year, and is now in more
than 5 mio U.S. households, according to Nielsen.
(Continued in next column)
Cargill's Truvia Now no.2 Sugar Substitute (Contd)
The brand's tabletop sales grew by 79% last year,
making it a USD 46 mio business, according to
Zanna McFerson, assistant VP and business
director for Truvia.
Among natural sugar substitutes-a rapidly
growing field of stevia-based sweeteners that
includes PureVia made by a subsidiary of Equal
parent Merisant (developed in partnership with
PepsiCo) and Sun Crystals by Splenda maker
McNeil Nutritionals, to name just two -- Truvia
commands a 66% share, McFerson reports.
Putting the market in perspective,
Mintel International estimated that U.S. sales of
stevia based sweeteners surpassed USD 95 mio in
2009, and could exceed USD 2 bio by the end of
2011. And the tabletop side of the balance sheet is
the tip of the iceberg, compared with the market
for sweeteners for prepackaged foods and
beverages.
A Freedonia Group sweetener analyst recently
told Fast Company that market is worth
trillions annually on a global basis. Cargill -- the
USD 108 bio, privately held agri-giant that counts
high-fructose corn syrup among its innumerable
products and businesses - doesn't reveal its
revenues from use of Truvia in foods and
beverages.
However, it reports that Truvia rebiana is now an
ingredient in more than 30 food and beverage
products, including Glaceau Vitaminwater Zero
(2010 sales: USD 93 mio), Coca-Cola Sprite
Green, YoCrunch 100 Calorie Packs, Kraft
Crystal Light Pure (first-year sales for 2010:
nearly USD 14 mio) and
Minute Maid Pomegranate Tea. (mediapost.com
April 04 2011)
Apr/May 2011 www.giract.com Page | 3
Starch Italics Starch Industry Overview
Starch & Derivatives
Iowa companies named in ‘corn sugar’ lawsuit
Several companies Integral to Iowa‘s agricultural
economy have been named as defendants in a
lawsuit brought by three sugar producers who are
upset by a new marketing pitch for high-fructose
corn syrup that labels the product as ―corn sugar.‖
Those companies named as defendants are
Archer Daniels Midland Co. (ADM), Cargill Inc.,
Corn Products International Inc.,
Penford Products Co., Roquette America Inc.,
Tate & Lyle Ingredients Americas Inc. and the
companies marketing and lobbying organization,
the Corn Refiners Association Inc.
The suit, which was filed in U.S. District Court in
Los Angeles, was brought by the
Western Sugar Cooperative, Michigan Sugar Co.
and C&H Sugar Company Inc. and seeks to end
the corn industry‘s marketing campaign, establish
corrective marketing and collect damages for false
advertising. The Corn Refiners Association
petitioned the U.S. Food and Drug Administration
to allow manufactures the option of using ―corn
sugar‖ as an alternative name for high-fructose
corn syrup — a moniker that has been tarnished in
recent years as a link to obesity and other health
complications.
Independent research, according to the
organization, indicated that despite the fact that
high-fructose corn syrup and table sugar contain
approximately the same amount of fructose,
nearly 58% of respondents believed high-fructose
corn syrup has more fructose than other table
sugar.
The term ‗corn sugar‘ succinctly and accurately
describes what this natural ingredient is and
where it comes from — corn,‖ said
Audrae Erickson, president of the Corn Refiners
Association, in a September 2010 press release
about the government petition for the alternative
name. (Continued in next column)
Iowa companies named in ‘corn sugar’ lawsuit (Contd)
The Western Sugar Cooperative, which represents
American sugar beet producers, argues that the
stunt is false advertising and contends that if the
public had a bad perception of the product,
high fructose corn syrup, then the product should
have been improved or benefits should have been
better explained.
But the battle over use of the word ―sugar‖ comes
at a time when the general public is hearing the
call of some nutritionists and health care experts
who are warning that all such substances — beet
and sugar cane sugar, both white and brown, and
high-fructose corn syrup are ―toxins‖ or
―poisons.‖ But the controversy surrounding sugars
has been ongoing for at least three decades, and is
probably one of the primary reasons, other than
manufacturers‘ cost, that high-fructose corn syrup
became so prevalent. (iowaindependent.com May
03 2011)
Cargill plans to convert corn wet mill into bio-refinery campus
After purchasing a corn wet mill facility outside
of Fort Dodge in March, the Minneapolis-based
company has since stated its hopes that the former
Tate & Lyle facility shuttered two years ago can
replicate a Cargill-owned bio-refinery campus in
Blair.
Now, after the Iowa Department of Economic
Development has awarded Cargill with USD 2
mio in loans and incentives for the Fort Dodge
facility that could produce up to 115 MM of
ethanol, the state of Iowa should also be hopeful
for some similarities. (Continued on next page)
Apr/May 2011 www.giract.com Page | 4
Starch Italics Starch Industry Overview
Starch & Derivatives
Cargill plans to convert corn wet mill into bio-refinery campus (Contd)
Nicole Reichert, Senior Communications
Counselor for Cargill Corn Milling North
America said, ―The corn wet ethanol plant will
provide the base load corn grind and we hope to
grow additional bio-based businesses at the site in
the coming years.‖
At the Blair facility, Cargill has partnered with a
number of other industry leaders including
Novozymes, Evonik and also a Cargill-owned
bio-plastics facility, Natureworks LLC, to
produce a wide range of products, from
bio plastics to animal feed additives and catalysts.
The ―over the fence‖ (OTF) experience Cargill
has gained in Nebraska will also correlate to the
success of the Fort Dodge facility, Reichert said.
―By providing a host of services, from starch or
dextrose for the OTF fermentation carbohydrate
source, to steam, to wastewater treatment,‖ she
said, ―the OTF model has proven successful in
allowing our plants to run more consistently at a
larger scale and for the customer to enjoy the
economies of scale, which come with being part
of a shared manufacturing base.‖
The plan is to produce a wide range of products
similar to those produced in Blair and Eddyville,
but the new facility will not produce corn-based
sweeteners or industrial starch.
(ethanolproducer.com April 29 2011)
China levy anti-subsidy duties on EU potato starch
EU Business reports that China would levy
anti subsidy duties of up to 11.19% on imports of
EU potato starch. The commerce ministry said
that importers of potato starch will have to pay a
deposit based on the alleged European Union
subsidy rates of 7.7 to 11.19% of the import price.
The statement also says that French starch
producers Roquette and Avebe of the Netherlands
are affected by the decision. (Continued in next
column)
China levy anti-subsidy duties on EU potato starch (Contd)
The taxes are to be imposed on top of
anti dumping duties of 12.6 to 56.7% which the
ministry started to levy from last month, remarks
EU business.
The European Commission announced its final
ruling to impose countervailing tariffs, ranging
from 4 to 12%, and anti-dumping duties of 8 to
35.1% on Chinese coated fine paper. The move
"severely hurt the interests of Chinese
enterprises," Chinese commerce ministry
spokesman Yao Jian said. "China is strongly
discontent with the EU's wrong decision and
firmly opposes it", he said.
EU-China trade has exploded in recent years,
making the EU the top destination for Chinese
exports, while China is the Europe's
second biggest trade partner after the United
States. (finchannel.com May 16 2011)
Vitamins may hitch a protected ride on corn starch
Vitamins and medications may one day take rides
on starch compounds, creating stable
vitamin enriched ingredients and cheaper
controlled-release drugs, according to Penn State
food scientists. The technique may offer drug and
food companies a less expensive, more
eco-friendly alternative in creating, among other
products, medications and food supplements. In a
series of experiments, researchers formed pockets
with corn starch and a fatty acid ester to carry
oil soluble vitamins such as vitamin A and
vitamin C, into the body, according to Gregory
Ziegler, professor of food sciences.
To form the pocket, the researchers, who released
their findings in a recent issue of Carbohydrate
Polymers, used a type of corn starch called high
amylose maize starch. (Continued on next page)
Apr/May 2011 www.giract.com Page | 5
Starch Italics Starch Industry Overview
Starch & Derivatives
Vitamins may hitch a protected ride on corn starch (Contd)
When amylose comes into contact with fatty acids
esters of vitamin A, for example, it creates a coil
with an internal wall that repels water --
hydrophobic -- and an exterior wall that attracts
water -- hydrophilic. The oil-soluble molecules
automatically move into the coil that encapsulates
the medication or vitamin.
The pharmaceutical industry uses other
ingredients and techniques to create inclusion
complexes, Ziegler, professor of food sciences,
said. For example, cyclodextrin complexes --
doughnuts of sugar molecules -- form in a similar
way to deliver controlled-release substances, such
as Ibuprofen. Ziegler said that because the cavity
in starch is a different size than that of
cyclodextrin, it can increase the size range of
molecules that can be encapsulated
(theindependent.com May 15 2011)
Xylitol for Antimicrobial, Cosmetic Preservative
Xylitol—natural sugar alcohol derived from
plants, fruits and vegetables—has antimicrobial
activity and could be considered as an alternative
preservative for cosmetic formulations.
Researchers aimed to evaluate the antimicrobial
effectiveness of C-8 xylitol monoester, for its use
as a preservative in cosmetic formulations. The
minimum inhibitory concentration (MIC) was
determined by the broth macro dilution method,
and the antimicrobial effectiveness of C-8 xylitol
monoester was determined by using challenge test
method
The results obtained in the determination of MIC
were between 1% and 1.25% for
Staphylococcus aureus, Escherichia coli and
Candida albicans and between 1% and 1.5% for
Pseudomonas aeruginosa and Aspergillus niger.
(Continued in next column)
Xylitol for Antimicrobial, Cosmetic Preservative (Contd)
The amount of 1% of C-8 xylitol monoester was
added to the lotion used in the challenge test,
observing a rapid decline in the number of CFU/g
in stages of evaluation after contamination of the
product by all bacteria. The same occurs in
relation to C. albicans, which showed a 90%
reduction in the number of CFU/g. Regarding
A.niger, a similar reduction was observed when
pH value of the lotion was adjusted from
5.5 to 7.0. (insidecosmeceuticals.com May 11
2011)
Ethanol merits federal support
Bob Vander Plaats, leader of an Iowa group that's
pressing GOP presidential candidates to hew to
conservative stands on social issues, was put on
the spot on federal bio-fuel policy at a tea party
news conference, after a leader of the movement
took a swipe at ethanol subsidies.
William Temple, who will be chairman of a tea
party national convention this fall in Kansas City,
Kan., said Congress was borrowing money in part
to "buy up a third of the U.S. corn croporation for
ethanol subsidies that spike food prices for the
world's poor." He demanded that House
Republicans force deep cuts in spending by
resisting an increase in the debt limit.
Vander Plaats said that the federal government
should support all forms of domestic energy and
that "ethanol is a piece of that."
The existing ethanol subsidy, 45 cents a gallon, is
worth USD 1.7 bio to Iowa's industry at its current
production capacity of 3.7 bio gallons/year. The
state also benefits from the impact that subsidies
and federal ethanol mandates on refiners have on
corn and soybean prices. (desmoinesregister.com
May 10 2011)
Apr/May 2011 www.giract.com Page | 6
Starch Italics Starch Industry Overview
Starch & Derivatives
Strategic Review of Corn Starch Industry & Markets - Starch Derivatives, Sweeteners & Co Products
Several developed economies globally remain in
recession and as the recession ends there will be
great opportunities for starch processing industry
especially to fulfill the demands of new
developing economies in Asia, South America
and Africa.
During mid-2010, finally National Starch Food
division found an acquirer in Corn Product
International. National will be managed as an
independent business unit. Recent demand on
starch from ethanol has greatly enhanced the
margins including HFCS.
In the US, HFCS demands declined significantly
in the past 3 years accounting for a drop of 11%
due to concerns of obesity and glycemic trends
among others. To compete, even the larger food
processors are introducing new extensions to their
lines claiming no fructose. From the company
point of view with sugar shortage and historical
high sugar prices, HFCS position will not erode
further significantly as in the past 3 - 4 years.
The total utilization of dried starch in the world in
2008 was 66.5 mio t (USDA, EU Commission).
Companies estimate for 2010 is 68 mio t with
annualized global growth of 2-3%. They
previously estimated this would reach 70 mio t by
2010; they missed this mark by 2 mio t manly due
to slowdown in US and EU.
China had the biggest growth with 17.5 mio t
production and has surpassed US with 13 mio t
for dry starch and fermentation; not including
sweeteners and alcohol. The US , EU and Japan
has lower growth of 2% per year, EU at 2%, and
Japan at 1-2%; in China and India the growth is
strong as expected to be 4-5 %
(Continued in next column)
Strategic Review of Corn Starch Industry&Markets Starch Derivatives, Sweeteners & Co-Products (Contd) The rest of the world grows at 3-4%. Both the
US and EU will have to compete for this growth
in China, India, other regions the rest of the world
grows at 3-4%. Both the US and EU will have to
compete for this growth in China, India, other
regions. There are only few starch processors left
in the US and even ADM and Cargill are
positioning themselves in EU and Asia.
National Starch remains a dominant specialty
player in the US. Cassava in South East and South
Asia and Central America will become more
dominant starch commodity as more production
technology is deployed. Cassava is 7.5 % of world
starch. This figure will have been rising faster as
China, India, South America and SE Asia
continue to improve their production. Above
values do not include corn utilization for dry corn
ethanol which more than double of corn used for
corn wet milled derivatives.
US corn production for 2009 was 13.2 bio bushel
a record vs. previous record of 13 bio bushels of
2007; it is due to increase demands for corn
ethanol by the dry corn milling plants. Farmers
planted 90 mio acres of corn compared to 79 mio
acres during 2009. According to RFA (Renewable
Fuel Association) and other reports, right now
there are 178 corn ethanol plants in operations and
24 plants under construction and 10 expansions of
current operations; these include 11 wet mill
operations. (sbwire.com April 29 2011)
GIRACT
2nd Starch Forum
Based on the success of our first Starch
Forum, one of its kind in India, we propose to
launch the 2nd Starch Forum to be held on
October 3, 2011 in Mumbai. Details on the
following page.
FORUM, India(venue to be announced)
MUMBAI, OCTOBER 3, 201118h15 to 20h00
GIRACT CONSULTANCIES INDIA PRIVATE LIMITED Tel: 91 422 420 4270
1420, Trichy Road, Coimbatore 641018 [email protected]
Note: It may be necessary for reasons beyond the control of the organisers to alter the content and/or timing of the agenda
Transnational Business Research & Consultancy
GIRACT
AGENDA
18h15 Registration/ Refreshments
18h25 Welcome and opening remarks R. Badrinath, Project Manager
GIRACT Consultancies India Pvt Ltd
18h30 Introduction
V. Krishnakumar, Managing Director
GIRACT, Geneva, Switzerland
18h40 Sustainability in the supply of starch
Speaker from a leading Pharmaceutical/Paper company
19h05 Recent amendments in FSSAI on modified starch
Speaker from FSSAI
19h30 Global trend in modified starch Industry
Speaker from a leading European/Asian starch company
19h55 Summing up and Conclusion
20h00 Buffet dinner and Networking
Geneva, Switzerland
The starch industry has faced numerous challenges and opportunities from other commodities like
emulsifiers and fine chemicals. Based on the success of our first Starch Forum, one of its kind in India,
we aim to bring together a working group from the starch industry (end users, suppliers, distributors,
R&D institutions, Government organizations and analysts) with paper and pharma being one of the
frontiers for growth in India, in order to:
offer an interactive forum for identifying common opportunities and threats in paper and pharma
discuss recent industry developments and their future, with particular focus on the potential for starch
obtain relevant views from eminent speakers from India and other major starch stake holders.
GIRACT has more than 30 years experience in
conducting landmark studies for the global starch
and derivatives market and is recognized as a
leading reference in this sector.
Its nine Starch Conferences held successfully in
Geneva, Switzerland have brought together all the major companies in the industry.
2ND STARCH FORUMINDIAN STARCH & STARCH DERIVATIVES INDUSTRY
UNLEASHING THE POTENTIAL
Apr/May 2011 www.giract.com Page | 7
Starch Italics Starch Industry Overview
Starch & Derivatives
Potato research tackles starch content and pests
New research projects aim to modify potato starch
content to improve nutritional benefits and to
reduce the effect of the crop's major pathogenic
threat, Sean Ottewell reports.
World production of potatoes stands at about
320 mio t/year, but late blight remains an ongoing
challenge. Caused by a fungus-like microbe, this
disease is difficult and economically challenging
to eradicate. It was largely responsible for the
Irish potato famine of the mid-19th century.
Today the cost of the disease is estimated at more
than EUR 5 bio/year, easily enough to drive
farmers out of business and increase food prices.
Howard Judelson at the University of California,
Riverside, has received a USD 9 mio
(EUR 6.2 mio), five-year grant from the United
States Department of Agriculture, National
Institute of Food and Agriculture USDA-NIFA to
research late blight and ensure a sustainable and
long-term control of this devastating disease.
"More than 40% of current crop production
among the top ten food crops is lost to pests and
diseases annually and that is a huge loss for
farmers," said Cathie Woteki, USDA under
secretary for research, education and economics.
"USDA is funding this project to help agricultural
producers win the future by ensuring our country
can keep producing the food needed to meet rising
global demand in a sustainable way."
"This grant to Dr Judelson builds on historic
UC Riverside strengths in research on this
pathogen and is one more acknowledgement that
UC Riverside is a leader in agricultural research,"
said Donald Cooksey, divisional dean for
agriculture and natural resources in UCR's
College of Natural and Agricultural Sciences.
(Continued in next column)
Potato research tackles starch content and pests (Contd) "By leading research on managing late blight, we
will help protect the productivity of potato
farmers worldwide."
The research project will focus on providing
growers with better tools for managing the
disease. (scientistlive.com May 25 2011)
Petrobras says gasoline, ethanol prices to fall
Ethanol and gasoline prices in Brazil are likely to
continue falling as the sugar harvest gets
underway, a senior executive at the
government run oil company, Petroleo Brasileiro
SA (PBR, PETR4.BR), or Petrobras, said.
Brazil's government mandates that one quarter of
gasoline sold at the pump is ethanol, so declining
prices for the cane-based product alleviate all fuel
prices, said Jose Lima de Andrade Neto, head of
Petrobras' distribution unit, BR Distribuidora.
"Ethanol prices continue to fall and therefore the
prospect is for gasoline prices to fall further,"
Lima said.
Ethanol costs have fallen to between
1.25 and 1.30 Brazilian reais (USD 0.77 and
USD 0.80)/liter, having peaked at BRL 2.70 in
recent months, Lima told reporters on the
sidelines of a conference
He denied that prices had been cut because of any
ministerial decision.
Petrobras seeks to keep gasoline prices steady by
ironing out international oil price volatility,
absorbing losses when the price is high and
making more money when global oil prices fall.
(Continued on next page)
Apr/May 2011 www.giract.com Page | 8
Starch Italics Starch Industry Overview
Starch & Derivatives
Petrobras says gasoline, ethanol prices to fall (Contd)
But the surge in ethanol prices is harder to
control, and had pushed up overall gasoline prices
because of the mix.
Government ministers had vowed to force
Petrobras to bring down prices, but Lima said
they came down naturally as the sugar-cane
crushing season got underway in April.
Meanwhile, fuel consumption continues growing
in Brazil. In the first quarter, fuel consumption
rose 5%-6% over the first quarter 2010, a faster
pace than overall economic growth, he said.
More consumers are moving into the middle class,
which means more are buying cars and travelling
by airplane, he said.
Aviation fuel consumption grew 14% to 15% in
2010 over 2009, he said. (marketwatch.com
May 19 2011)
Fungus process makes ethanol production more efficient Hans van Leeuwen of Iowa State University is
leading a research team that has developed a
process that uses a fungus to make a high-protein
animal feed from the leftovers of ethanol
production.
Growing Rhizopus oligosporus fungus also
cleans the water used in the ethanol
production process so that it can be recycled
back into fuel production. The process, called
MycoMeal, could one day produce a low-cost
nutritional supplement for people.
For every gallon of ethanol produced, there
are about 5 gallons of leftovers known as
stillage. The stillage contains solids and other
organic material. Most of the solids are
removed by centrifugation and blended with
dried distillers grains that are sold as livestock
feed, primarily for cattle. (theengineer.co.uk
May 23 2011)
Apr/May 2011 www.giract.com Page | 9
Starch Italics Starch Industry Overview
Starch & Derivatives
Composite Technical Services Introduces Polycard XFN Bio-Based Polyols Composite Technical Services (CTS) has
introduced Polycard XFN, a new class of
bio based polyols designed to improve the
physical properties of applications like bio-based
rigid spray foams, sandwich panels and
pour in place insulation systems
CTS say that Polycard‘s polyols exhibit high
thermal stability and have also demonstrated the
capability to enhance compressive strength,
increase fire retardancy and improve dimensional
stability. Polycard permits manufacturers to
increase the amount of renewable content in
end products like foams.
CTS developed Polycard with Italian partner
Cimteclab to meet the demand for a low-cost
renewable resource-based raw material without
the supply restraints of conventional polyols or
the environmental issues associated with
petroleum-based organic compounds.
Polycard is made from cashew nutshell liquid
(CNSL) using solvent-free technology. CNSL, an
abundant agricultural by-product, is considered an
industrial waste stream making the material less
sensitive to changes in food and oil prices. The
flexibility of Polycard‘s chemical structure allows
the material to be modified into other polyol
structures suited to the polyurethane and
composite industries. (netcomposites.com
May 20 2011)
ADM expands South American operations
Archer Daniels Midland Co. is building a new
port terminal in Uruguay to export corn,
soybeans, wheat and soybean meal from
South America to markets in Europe and
elsewhere. The agribusiness conglomerate said
the port terminal will be located at Nueva Palmira
and will export crops to Asia, Latin America and
Africa as well as European markets. "ADM
continues to invest in South America as we
expand the size and reach of our processing and
transportation operations in the world's key
agricultural regions," Domingo Lastra, president
of Archer Daniels Midland South, said in a
statement.
The company said construction will begin
immediately on the port terminal, which should be
completed in about two years. Global supplies of
corn, wheat and soybeans remain at historically
low levels because growing demand is
outstripping supplies. Prices for all three grains
have risen this year, nearly doubling in the case of
corn and wheat.
Archer Daniels Midland and other companies
have been beefing up their operations in South
America, where land is relatively cheap and crop
production is on the rise.
The company's new port will be able to store
180kt of crops. It is expected to handle 2.8 mio t
of grain and soybeans in its first year of operation,
and will employ about 100 people. Shares of
Archer Daniels Midland fell 27 cents, or nearly
1%, to close at USD 31.49. (chicagobusiness.com
May 20 2011)
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Apr/May 2011 www.giract.com Page | 10
Starch Italics Starch Industry Overview
Starch & Derivatives
Company News
DSM, Roquette to build commercial scale succinic acid project in Italy The so-called fossil-age will make a shift to the
bio-based-economy. In two or three centuries
from now, people will look back on our
civilization as a merely brief moment in history
where we in a period of just about 250 years
shifted our total economy to coal, oil and gas. To
make the shift back to living with, and especially
off, nature, we need to start this shift now. We are
at a turning point towards a next green industrial
revolution to secure our feed and fuel needs in the
future.‖
With those words, Feike Sijbesma, CEO of DSM,
accepted the George Washington Carver award
for innovation in biotechnology at the BIO World
Congress on Industrial Biotechnology, as he
announced that DSM and Roquette Frères will
build a commercial scale plant for the production
of bio-based succinic acid. With a capacity of
about 10kt/year, the plant will be Europe‘s largest
bio-based succinic acid facility. It is expected to
come on stream in H2 2012 and will be built on
the premises of Roquette in Cassano Spinola
(Italy). Financial details of the investment will not
be disclosed
Succinic acid is a chemical building block used in
the manufacture of polymers, resins, food and
pharmaceuticals among other products. Bio-based
succinic acid, a renewable and versatile chemical
building block, is an alternative to
petroleum derived chemical building blocks such
as adipic acid and 1.4- butanediol. As a result of
price competiveness and its renewable nature,
bio based succinic acid is addressing a larger
market than fossil feedstock based succinic acid.
The commercial scale bio-based succinic acid
plant is another important step in the successful
cooperation between DSM and Roquette that
started in 2008. (Continued in next column)
DSM, Roquette to build commercial scale succinic acid project in Italy (Contd)
Early 2010 DSM and Roquette opened a
demonstration plant in Lestrem (France), which
has been running at full capacity. In 2010
DSM and Roquette also announced their intention
to establish a joint venture (which will be carrying
out business under the name Reverdia) for their
cooperation, subject to regulatory approval.
The new commercial production facility in Italy
will be producing fermentation based bio-succinic
acid. The proprietary yeast-based fermentation
process, which operates at a much lower pH than
competing processes, allows succinic acid to be
produced with a significantly higher energy
efficiency compared to the traditional method.
It is also one of the first bio-based processes that
sequesters carbon dioxide in the production
process. The new production facility will for the
time being use starch derivatives as feedstock. In
the longer term the aspiration is to switch to
second generation feedstock (cellulosic
biomass.(biofuelsdigest.com May 10 2011)
ADM starts bio-propylene glycol unit
Archer Daniels Midland Co. has opened a facility
for bio-based propylene glycol in Decatur. The
facility started operations in late March, according
to ADM, and is now producing industrial-grade
propylene glycol.
The company hopes to increase the plant‘s
capacity over the next few months, adding the
production of propylene glycol, which meets USP
(US Pharmacopeia) specifications.
(Continued on next page)
Apr/May 2011 www.giract.com Page | 11
Starch Italics Starch Industry Overview
Company News
ADM starts bio propylene glycol unit (Contd)
Paul Bloom, business director of Industrial
Chemicals, said, ―Company will be piloted with
the necessary design modifications, reviewed and
updated our operational safety program and then
implemented the improvements at scale to bring
the facility online in late March, because ADM is
committed to safely producing high-quality,
biobased propylene glycol, we took time to ensure
our facility was getting the right results, the right
way.‖
The facility has also produced certified kosher
glycerin, which meets USP specifications since
April 2009. (plasticsnews.com April 21 2011)
ADM to acquire Prairie Pride soy crush and biodiesel plants
Decatur, Ill.-based agribusiness firm, Archer
Daniels Midland Co. has agreed to acquire a
soybean crushing facility and 30 MMgy biodiesel
production plant from Prairie Pride Inc. in
Deerfield, Mo. ADM will also form a partnership
with PPI for the biodiesel portion of the business.
PPI responded to ADM‘s acquisition of its soy
crushing and biodiesel production assets, stating
―Earlier this year, in conjunction with a division
of General Electric, we worked to find partners
and potential purchasers of the crush and
biodiesel facilities. After a bidding process
conducted by GE, ADM has agreed to purchase
the debt held by GE and will become our primary
creditor. (Continued in next column)
ADM to acquire Prairie Pride soy crush and biodiesel plants (Contd)
Not only has ADM offered to infuse more capital
into the crush and biodiesel facilities, they also
have requested that Prairie Pride participate
alongside ADM in the future of the biodiesel
facility.‖
Al Decker, treasurer of PPI‘s board of directors,
told Biodiesel Magazine that the biodiesel plant
ceased production in February last year and has
sat idle prior to ADM‘s stepping in with the
acquisition. Decker said the company had spent
over a year working for a solution to resume
operations, but the company became financially
distressed, citing the lapsed tax credit as the
primary culprit behind the decision to halt
production
The Deerfield biodiesel plant broke ground for
construction in 2006 and began producing
biodiesel in 2007. For ADM, the acquisition of
PPI‘s soy crush and biodiesel production assets
was attractive because it further highlights the
company‘s growth strategy in the U.S. and
internationally
―ADM‘s growth strategy involves expanding the
volume and diversity of crops that we source and
process; expanding the reach of our origination,
transportation and processing assets and
expanding our value-added product portfolio,‖
ADM said in an email correspondence. ―The
Prairie Pride facility will increase our North
American crush capacity and it fits well within
ADM‘s integrated business model.‖
Alan Willits, president of Cargill Corn Milling
North America, said the company believes the
facility will fit well into its bio-product portfolio
when the acquisition was announced, and Iowa
Governor Terry Branstad praised Cargill‘s
investment in the state, noting the 100-plus jobs
the new facility is expected to create.
(ethanolproducer.com April 29 2011)
Apr/May 2011 www.giract.com Page | 12
Starch Italics Starch Industry Overview
Company News
Tate and Lyle, Electrocomponents We have become used to companies grumbling
about rising raw material prices, but those
grumbles are often music to the ears of food
ingredients firm Tate & Lyle.
In a trading update at the end of March the
company said that operating performance over the
company‘s full year had been in line with market
expectations, save for the company receiving a
late boost to co-product income from the rise in
corn prices. That sent investment analysts
scurrying to revise their earnings estimates, and
market consensus is now for profit before tax of
GBP 247.7m on sales of GBP 2.6bn. Credit
Suisse thinks those estimates might still
undervalue the corn price boost; the Swiss bank is
forecasting profit before tax of GBP 255m.
―With another 2 months trading behind us [since
the March update], we believe the outlook for
2011/12 is probably a bit better now as well. US
starch volumes are robust, by-product credits
remain strong, exports to Mexico continue to
offset US HFCS declines and European sweetener
prices are rising with the EU sugar price,‖
Credit Suisse said.
Broker Charles Stanley is expecting
Tate & Lyle‘s Bulk Ingredients business, which
accounts for around 70% of group sales, to have
had a strong year but thinks the market might be
more interested in what new boss Javed Ahmed
has to say regarding the outlook for the Speciality
Food Ingredients business; the division only
accounts for 30% or so of group sales but 555 of
EBIT. ―We look for robust volume growth across
divisional product categories and will be
interested in what Tate has to say regarding
prospects for operating margins both on fixed and
multi-year contracts.
(Continued in next column)
Tate and Lyle, Electrocomponents (Contd) These results should provide investors with an
update on the ‗Focus, Fix, Grow‘ strategy and
perhaps greater clarity regarding the way forward
in Speciality Foods,‖ the broker said. Electronics
and maintenance products supplier Electrocompo
nents upped full-year profits guidance at the
beginning of April, but Singer Capital Markets
thinks profits might still come in ahead of
expectations. Market consensus is for pre-tax
profit of GBP 113.5 mio on sales of GBP
1.17 bio.
―For the full year to March 2011, we are
anticipating revenue of GBP 1 151 mio, up 18.4%
on 2010, gross profit of GBP 539 mio up 15%,
with operating profit of GBP 120.4 mio, up 52%,
highlighting the operational gearing implicit in
distributors. We are anticipating a gross margin of
46.8% for the year, in line with the first half, as it
appears that the company has finally arrested the
constantly declining margin that was a feature of
the company for a number of years,‖ Singer said.
As for profit before tax, ―we are forecasting
growth of 54% to GBP 114.4 mio, vs a consensus
of GBP 113.5 mio and a narrow range of
GBP 110.6 mio to GBP 115.4 mio. We expect
EPS [earnings per share] to grow 53% to 17.9p,
with a maintained DPS [dividend per share] of
11p. Full year net debt should be around GBP
147.9 mio, down from GBP 172.1 mio a
year ago,‖ the broker added. Charles Stanley,
however, thinks market consensus is a little on the
optimistic side and predicts profit before tax of
GBP 113 mio, EPS of 18p
and a full-year divi of 11p.
(Continued on next page)
Apr/May 2011 www.giract.com Page | 13
Starch Italics Starch Industry Overview
Company News
Tate and Lyle, Electrocomponents (Contd) Charles Stanley also downplays the effect of the
Japanese earthquake. ―The business in Japan (3%
of group sales) was not directly affected by the
earthquake and current sales are running at similar
levels to last year,‖ the broker said.
―Products sourced from Japan for sale around the
rest of the group account for another 3% of sales.
Any disruption should not have any material
impact on the group as it sources products from
some 2 500 global suppliers,‖ Charles Stanley
noted. (sharecast.com May 27 2011)
DuPont building up biotech
Wilmington's DuPont Co. doubled down on
biotechnology last week, completing its
USD 6.4 bio bid for Danish enzymes firm
Danisco and beginning the process of combining
the two companies.
With the Danisco purchase, DuPont moves yet
further away from its storied history in explosives
and commodity chemicals and further into what
may be considered a third era for the 209-year-old
Delaware company -- this one defined by
biotechnology.
DuPont is already a force in agricultural biotech
through its ownership of Pioneer Hi-Bred
International, a USD 5.3 bio Iowa firm that sells
genetically altered soybean seeds.
DuPont purchased Pioneer for USD 7.7 bio in
1999, in its last major acquisition. Architects of
the Danisco deal say the addition of the
Copenhagen-based company makes DuPont a
major player in industrial biotechnology and will
bolster efforts to produce materials from
renewable sources like corn starch and soy.
(Continued in next column)
DuPont building up biotech (Contd) Danisco, which makes food ingredients and
additives, also markedly strengthens
DuPont's food business. Its addition will create a
standalone USD 3 bio nutrition and health
segment.
"We would call this a strategic acquisition," said
Craig F. Binetti, a DuPont president who will lead
the newly created nutrition and health business.
DuPont completed its purchase of Danisco after a
five-month-long public negotiation with holdout
shareholders. According to company statements in
January, when DuPont launched its bid, the deal
will be financed with debt plus USD 3 bio in
existing cash.
DuPont expects it could cost 45 cents/share in
2011 earnings but add to earnings by next year.
Jefferies & Co. analyst Laurence Alexander, who
follows DuPont, expects Danisco to add
20 cents/share in 2012. Alexander said the
DuPont purchase values the company at
USD 6.89 bio.
Alexander expects integration "should run fairly
well due to the close partnerships over the past
decade." The companies currently partner on a
project to produce ethanol from corn cobs and
switchgrass (delawareonline.com 22 May 2011)
Apr/May 2011 www.giract.com Page | 14
Starch Italics Starch Industry Overview
Company News
Bio Fuels
Cargill plans to convert corn wet mill into biorefinery campus
Fort Dodge, Iowa, may be nearly 150 miles away
from Blair, Neb., but Agriculture giant Cargill
Inc. might hope the two areas are close in some
ways. After purchasing a corn wet mill facility
outside of Fort Dodge in March, the
Minneapolis based company has since stated its
hopes that the former Tate & Lyle facility
shuttered two years ago can replicate a
Cargill owned biorefinery campus in Blair. Now,
after the Iowa Department of Economic
Development has awarded Cargill with
USD 2 mio in loans and incentives for the Fort
Dodge facility that could produce up to
115 MMgy of ethanol, the state of Iowa should
also be hopeful for some similarities
―We see an opportunity in Fort Dodge to replicate
the success we have had at our Blair, Neb., and
Eddyville, Iowa, biorefinery campuses,‖ said
Nicole Reichert, senior communications
counselor for Cargill Corn Milling
North America.
―The corn wet mill ethanol plant will provide the
base load corn grind for the facility, and we hope
to grow additional biobased businesses at the site
in the coming years.‖ At the Blair facility, Cargill
has partnered with a number of other industry
leaders including Novozymes, Evonik and also a
Cargill-owned bioplastics facility,
Natureworks LLC, to produce a wide range of
products, from bioplastics to animal feed
additives and catalysts
The ―over the fence‖ (OTF) experience Cargill
has gained in Nebraska will also correlate to the
success of the Fort Dodge facility, Reichert said.
―The OTF model has proven successful in
allowing our plants to run more consistently at a
larger scale and for the customer to enjoy the
economies of scale, which come with being part
of a shared manufacturing base.‖ (Continued in
next column)
Cargill plans to convert corn wet mill into biorefinery campus (Contd)
While she did not give specifics on what Cargill
has planned for the facility in Fort Dodge, she did
say that the company will work to increase the
efficiency of the facility. And, she said, ―Cargill
anticipates making a series of additional
investments to develop this facility into a
biorefinery complex.‖ The plan is to produce a
wide range of products similar to those produced
in Blair and Eddyville, but the new facility will
not produce corn-based sweeteners or industrial
starch.
China Set to Increase Use of Biofuels
China can become a leader in the production of
second generation (2G) biofuels, made from
agricultural waste instead of foodstuffs, such as
sugar, starch and vegetable oils said a senior
executive from one of the industries' leading
companies. That's as the nation attempts to
improve energy efficiency and reduce reliance on
fossil fuels. "The United States is the biggest
producer of first-generation (1G) biofuels.
Regarding 2G production, no other country has
shown leadership, so maybe China will move
faster on this because it has been put on the
political agenda," said Michael Christiansen,
President of Novozymes (China) Investment Co
Ltd, referring to the nation's 12th Five-Year Plan
(2011-2015). Christiansen made the remarks in
an exclusive interview with China Daily on
April 15 at Boao, a small town on the east coast of
Hainan province, where he was attending the
annual "Forum for Asia" conference.
(Continued on next page)
Apr/May 2011 www.giract.com Page | 15
Starch Italics Starch Industry Overview
Bio Fuels
China Set to Increase Use of Biofuels (Contd)
The Denmark-based Novozymes is the largest
provider of industrial enzymes and market leader
in enzyme technology for biofuels. Christiansen
said Novozymes has a market share of about 50%
in China in 1G biofuel production, but more
opportunities will be created as the nation's new
Five-Year Plan places a heavy focus on
2G production, although detailed plans are not yet
available. Global biofuel consumption will
increase from the current level of 55 mio t of oil
equivalent - the amount of energy obtained by
burning one standard barrel of oil - to 750 mio t in
2050.
Meanwhile, over the same period, the proportion
of biofuel used in the transportation-fuel market
will rise from 2% to 26%, with 2G biofuels
accounting for roughly 90% of all biofuels used,
according to a report by the International Energy
Agency.
By developing 2G technology, China can reduce
the import volume of crude oil, and reduce CO2
emissions by 90% from current levels, he said. `
"It fits perfectly with China's next Five-Year Plan
to reduce inefficiency."
The nation has announced plans to reduce CO2
emissions by 40 to 45% by 2020. It's expected
that energy consumption of non-fossil fuels could
account for more than 11% of the country's total
energy consumption by 2015. Christiansen
suggested that between 2.4 and 2.8% of China's
total energy consumption could be produced from
biomass (organic material) by that date. "That's a
big increase compared with the existing situation
five, seven or even 10 times more." Currently,
Chinese annual biofuel production stands at
2 mio t, he estimated.
(Continued in next column)
China Set to Increase Use of Biofuels (Contd)
In addition, 2G biofuel production could benefit
the economy with less effect on food supply and
prices. "1G biofuel has become very popular, but
we worry that if it becomes too popular, too much
food goes into the production of biofuels.
Production of the fuel from agricultural waste will
have a lower effect on food prices."
Food security concerns have led the government
to restrict grain-based ethanol production and to
promote non-grain-based fuel ethanol production
instead, according to a report by the
World Economic Forum (WEF) in June 2010.
In May 2010, Novozymes, China National
Cereals, Oils and Foodstuffs Corporation, and
China Petrochemical Corporation announced the
construction of a 10kt-capacity demonstration
plant for commercial-scale production of
advanced biofuels from corn stover - the leaves
and stalks of maize plants - which will begin this
year. "By the end of 2011, we plan to take the
next step moving from a pilot scale, which is
20 times bigger than what we have today. Then by
2013, we will move to a commercial size, which
will be somewhere between 50 and 100kt," said
Christiansen.
In common with other companies in the industry,
Novozymes is also eyeing China's biochemical
market, he said. In April 2010, Novozymes and
Dacheng Group, a leading corn processer located
in Jilin province, made an agreement to make
plastics from agricultural waste.
The companies have agreed to expand their
cooperation in developing biochemicals derived
from biomass and to promote production of
plant based glycol. Now the two are evaluating
different production methods.
(Continued on next page)
Apr/May 2011 www.giract.com Page | 16
Starch Italics Starch Industry Overview
Bio Fuels
China Set to Increase Use of Biofuels (Contd)
Christiansen predicted the company will maintain
an annual growth rate of around 20% in the
biofuel and biochemical business in China over
the next five years. "That's a lot of fantastic
benefits in this. We are in the starting phase of
creating a new industry.
The new ways of producing chemical and fuels
will take time. In five years, we will see a more
mature industry." According to the WEF report,
the conversion of biomass into fuel, energy and
chemicals has the potential to generate upwards of
USD 230 bio for the global economy by 2020.
China's use of biofuel ethanol will reach
12.7 bio liters by 2020, while automotive ethanol
gasoline usage will be 100%, and annual
consumption of biodiesel will reach 2.3 bio liters,
according to the targets set by the National
Development and Reform Commission
(english.cri.cn April 27 2011)
Biofuels can provide up to 27% of world transportation fuel by 2050
A new report from the
International Energy Agency (IEA) says that the
widespread deployment of biofuels can play an
important role in reducing CO2 emissions in the
transport sector and enhancing energy security,
when produced sustainably.
Most conventional biofuels (produced mainly
from starch, sugar and oilseed crops) must
therefore be improved in terms of conversion- and
land-use efficiency to achieve considerable
greenhouse-gas reductions.
In addition, advanced biofuel technologies
currently at the demonstration stage (produced
mainly from lignocellulosic biomass such as
wood and straw), need to be commercially
deployed within the next ten years and will
provide the major share of biofuels in 2050.
(Continued in next column)
Biofuels can provide up to 27% of world transportation fuel by 2050 (Contd) In total, the report assesses the expenditure on
biofuels required to meet the roadmap targets
between USD 11 trillion to USD 13 trillion over
the next 40 years, depending on the actual
production costs. ―This figure may seem large,
but in fact even in the worst case biofuels would
only increase the total costs of transport fuels by
around 1% over the next 40 years, and could in
fact lead to cost reductions over the same period.‖
―With world population growing by more than
30% to 9 bio people in 2050, and food demand
increasing approximately 70% according to
estimates by the Food and Agriculture
Organization of the United Nations, competition
of biofuel production for land with food, fodder,
as well as fiber production needs to be carefully
addressed to avoid negative impacts from biofuel
expansion on food security,‖ said Mr. Diczfalusy
There is a great potential for using low-risk
sources that require limited land expansion, and
should not compete with food production, to
provide feedstock for the expanding biofuel
industry. The report says the use of residues and
high yielding energy crops as feedstocks, and the
efficient use of biomass, for instance through
integrating biofuel and bio-material production
(so-called biorefineries), will be vital to reduce
land competition.
In addition, sustainability certification of biofuels,
following internationally agreed sustainability
criteria, will be an important step towards
ensuring that biofuel production and use have a
positive environmental, social and economic
impact. Around 3 bio t of biomass per year will be
needed in 2050 to produce the amount of biofuels
envisioned in the IEA roadmap.
(Continued on next page)
Apr/May 2011 www.giract.com Page | 17
Starch Italics Starch Industry overview
Bio Fuels
Biofuels can provide up to 27% of world transportation fuel by 2050 (Contd)
The report assesses that 1 bio t of biomass
residues and wastes would be needed, and this
would need to be supplemented by production
from around 100 mio hectares of land - around
2% of total agricultural land. This would be a
three-fold increase compared with today, but the
yield of biofuels could increase by a factor of 10
through the use of wastes and residues and
through the use of more productive crops and
processes. (bioenergy.checkbiotech.org April 26
2011)
Great Falls ethanol plant clears financing hurdle
A USD 400 mio ethanol plant proposed for Great
Falls has cleared a key hurdle required to qualify
for a loan guarantee from the U.S. Department of
Energy, an official said late this week. Although
the project still is not assured of receiving the
federal loan guarantee, "we have successfully
met" Part II criteria of the program,
Gary Hebener, President of Montana Advanced
Biofuels, announced late this week.
"We have moved to the final due diligence phase
of the process," Hebener said. "While this is
expected to take a number of months as the
Department of Energy brings in additional market
consultants and engineers for a final review, we
are very optimistic."
(Continued in next column)
Great Falls ethanol plant clears financing hurdle (Contd)
The plant, which would be located near
Malmstrom Air Force Base, would provide about
100 manufacturing jobs, and provide hundreds of
temporary jobs during the construction phase,
officials said.
Montana Advanced Biofuels applied for an air
quality permit from the state of Montana April 20.
Hebener said the plant will produce no odors.
Hebener has been working to bring an ethanol
plant to Great Falls for more than 20 years. The
plant would use grain from the region's farmers to
create ethanol for vehicles, gluten and wheat bran
for human consumption, and grain feed for
livestock.(greatfallstribune.com April 30 2011)
Corn ethanol is inefficient and drives food prices higher The United States loves corn. We use it for
everything, from Coca-Cola sweetener to cow
feed to ―plastic‖ cup base. And we grow a lot of
it: about 730 bio pounds in 2010 On par with
America‘s love for corn is its oil addiction—and
over the past 10 years we have combined these
two great infatuations in the form of ethanol, a
biofuel that can be mixed with gasoline to power
cars and trucks.
While the process of making corn ethanol
involves simple fermentation and distillation—not
unlike making whisky or vodka—the impacts of
moving nearly 126 bio pounds of corn off the
table and into the tank are enormous, and
infinitely more complex.
Corn, like any plant, needs sunlight, soil and
water to grow.
(Continued on next page)
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Starch Italics Starch Industry Overview
Bio Fuels
Corn ethanol is inefficient and drives food prices higher (Contd)
In the United States, it gets myriad additional
inputs: in 2005, farmers applied 10 bio pounds of
nitrogen fertilizer to our nation‘s corn, irrigated
more than 80% of the cropland and sprayed about
170 mio pounds of herbicides and that‘s while the
plants were still in the field.
And unfortunately, that‘s the lowest energy ratio
out there for biofuels. For comparison, Brazil—
the world‘s second largest biofuels producer after
the United States—gets an output ratio of 2 from
their sugar cane ethanol.
Also, studies on net energy output of biofuels are
convoluted and often hard to sift through: while
some say it takes more energy to produce biofuels
than the fuel provides, others say just the
opposite. We‘ll attempt to clarify the situation in
the Nitty Gritty.
While energy ratios give a valuable metric for
comparison, judging the impacts of biofuels—and
their ultimate value as a sustainable fuel source—
is more complex than comparing energy outputs
or piecing together lifecycle analyses.
Corn ethanol has environmental, economic and
social impacts that reach far beyond the gas tank.
And by almost any analysis, those impacts make
it a poor choice for fuel in the United States.
One such negative impact is diverting corn from
food to fuel: the 14 mio acres of corn we used for
biofuels in 2008 could have fed 26 mio cows to
maturity, or have sustained as many as 100 mio
people for a year. Further, choosing to use that
corn for fuel decreased the amount available as
food on the international market and may have
contributed to skyrocketing food prices and
increasing deforestation rates in the Amazon.
(Continued in next column)
Corn ethanol is inefficient and drives food prices higher (Contd)
Even characters in fables are susceptible to
economic incentives, evidently. With the help of
decades of farm subsidies keeping inputs cheap, a
tariff on foreign ethanol, 40% of production costs
being covered by tax dollars, and government
mandates for production, sending corn to the tank
earns famers a lot more money. Is that really our
primary goal from an alternative fuel source?
Almost certainly not, so lets look elsewhere for
fuel and leave the corn for the cola and cows.
(peninsulapress.com April 26 2011)
Next generation of corn products entering market This year, the dedicated efforts of agribusiness,
farmers, biotechnology advocates and others,
including the National Corn Growers Association,
are producing results as a new generation of corn
technologies are set to enter the market. Now,
farmers can look forward to specialty products
intended for specific markets and corn capable of
better coping with climate-based stressors.
―Fifteen years of biotechnology advocacy and
support for science-based regulation created the
conditions for approval of these exciting new
products,‖ said the NCGA Trade Policy and
Biotechnology Action Team‘s Chad Blindauer.
―We applaud the release of products that provide
growers with options that allow them to diversify
or improve their operations. At the same time, this
success renews our dedication to grower access to
technology. I strongly urge farmers to consider
the power that grassroots activism has as
demonstrated by these events.‖
Earlier this year, the Animal and Plant Health
Inspection Service deregulated corn engineered to
produce a common enzyme called alpha-amylase
that breaks down starch into sugar, thereby
facilitating a vital step in ethanol production.
(Continued on next page)
Apr/May 2011 www.giract.com Page | 19
Starch Italics Starch Industry Overview
Bio Fuels
Next generation of corn products entering market (Contd)
This represents a major change in the types of
corn traits available to growers. Until the
deregulation of corn amylase, traited corn
products protected yield and reduced stress from
biotic factors such as insects or weeds. This
reduced inputs needed to protect the crop and
maintain yields. Corn amylase opens new options
as the first output trait approved and
commercialized.
Now, APHIS is in the final stages of
consideration for deregulation of the first biotech
corn variety that targets abiotic stress, drought.
This will be the first variety available that reduces
stress from a purely climatic factor. In the future,
further abiotic traits better suiting corn for cooler
weather and other climate-based stressors are
expected. ―APHIS deregulation of corn amylase
represented a major triumph for science-based
regulations,‖ said Blindauer. ―The introduction of
additional options continue to allow growers to
produce the corn needed for food, feed, fuel and
fiber in a rapidly growing world.‖
(southwestfarmpress.com May 23 2011)
Company eyes biofuel potential
CORE BioFuel Inc. is holding an information
session May 27 to provide more details ―We think
there‘s an opportunity in Terrace. There are
locations and there‘s fibre,‖ says Toronto-based
CORE BioFuel official Doug Sheppard. One
possible location is the city‘s airport industrial
lands, the Skeena Industrial Development Park.
―We‘ve had discussions with members of your
town council and also several of your
lumbermen,‖ Sheppard said. CORE BioFuel is
also holding a session in Smithers and one in
Houston where it has already been spending time
and effort on selecting a plant site. (Continued in
next column)
Company eyes biofuel potential (Contd)
The company developed an interest in the
northwest when it built a connection with a Burns
Lake business group with access for wood.
―We now have investors throughout the area,‖
said Sheppard.
The decision to hold information meetings
follows the signing of a memorandum of
understanding with so-far unnamed project
developer to develop as many as four plants. ―For
now they don‘t want their name known, but they
will be at the Houston meeting and possibly the
others,‖ said Sheppard.
He stressed that CORE is not the inventor of the
wood-into-gas method, but is working on
developing it as a commercial process
Intense heat is used to convert primarily waste
wood into 92 octane gas.
―We wouldn‘t own the plant. We would license
the technology,‖ Sheppard said.
Each plant would cost USD 100 mio and require
220kt of fibre a year to produce 67 mio litres of
gas.
―And we‘d be profitable without a subsidy, but
we won‘t turn down any help if offered,‖ said
Sheppard. ―We‘ll take help where we can get it.
―We believe we‘re the leading edge biofuel
company in the world,‖ he added.
In addition to 40-50 inside workers, a plant
capacity of the size proposed by CORE BioFuel
would required approximately 150 outside
workers to provide the wood. (bclocalnews.com
May 25 2011)
Apr/May 2011 www.giract.com Page | 20
Starch Italics Starch Industry Overview
Bio Fuels
Luverne ethanol plant to highlight market-expanding technology
Gevo Inc., an Englewood, Colo., company, has
bought the Agri-Energy ethanol plant in Luverne,
Minn., and will retrofit it with new technology it
hopes will be a game-changer in the ethanol
industry. By the middle next year, Gevo plans to
make commercial quantities of iso-butanol which
can be used as liquid fuel, like ethanol. But the
additional carbon in its structure makes it burn
with more energy than ethanol
Because it repels water, like gasoline, isobutanol
can be transported in existing oil pipelines and
shipped directly to gasoline refineries for fuel
blending. Also, isobutanol can be used as a
building block to make the ubiquitous plastic
polymers that until now were made only with
isobutanol refined from oil. That has the potential
to open the enormous plastics, synthetic fiber and
rubber and chemical solvents markets to what is
now the renewable fuels industry.
Jack Huttner, Gevo's executive vice president for
corporate development, "Our conception is
isobutanol as a fermentation alcohol can be a
bridge between the agricultural supply chain and
the petrochemical and refining supply chain".
Calculated on the spread between the price of oil
and the cost of growing corn, "we have very
favorable market conditions," Huttner said. And
as cellulose-based ethanol technology comes to
the commercial market, it also can be adapted by
Gevo to make isobutanol. This opens a whole new
range of potential feed stocks that are cheaper
than oil. (argusleader.com May 23 2011)
Renewable Energy In the Pond
Ethanol has traditionally been produced using
corn. The problem with using corn for ethanol is
that corn is a food staple for humans and the
removal of corn from the food cycle is seen by
some as anti-human.
The theory is that by using corn as the basis of an
energy source, we are taking a potential
life saving food source from the mouths of those
in need. Because of this ―corn is food, not fuel‖
perception, corn-based ethanol has struggled to
gain the widespread footing needed to rise as a
major player in the world of alternative energy
sources.
Duckweed is a food source for ducks and other
water-based birds, and has been used as a food
source by some residents in the countries of
Vietnam, Korea and others in that area. However,
Duckweed is not a major source of food for these
people and the use of Duckweed in ethanol
production is widely accepted as a sustainable
practice.
North Carolina State University researchers
discovered that Duckweed has an appetite for
animal waste, quickly converting it to leafy starch
that can then be converted into ethanol. The
really exciting thing for those that are purely
interested in the power of the plant as a fuel, and
less concerned about its environmentally friendly
characteristics, is that the researchers found
Duckweed produced four to six times the starch
that corn could produce.
Corn also uses a tremendous amount of water and
chemicals to grow, something Duckweed does not
need. What I like about Duckweed is that instead
of taking pesticides and water to produce corn for
ethanol production, we can actually use a plant
that absorbs toxins and works with water,
eliminating the two major environmental barriers
to corn-based ethanol‘s claim of being a green
alternative fuel source. (Continued on next page)
Apr/May 2011 www.giract.com Page | 21
Starch Italics Starch Industry Overview
Bio Fuels
Bio Plastics
Renewable Energy In the Pond (Contd) The term that is most commonly used for this fuel
source is Aquatic Biofuel. To date, Aquatic
Biofuels have been identified as either fish waste
to produce bio-diesel, micro-algae to produce
crude oil for diesel production, and micro-algae to
produce bio gas. But the finding that Duckweed
can be used for ethanol is a major breakthrough.
A company called Ceres is working on a
duckweed production process that can yield one
megawatt of power from a single acre of
duckweed pond production. Many others have
tried to do similar projects, but have run into
issues when the harvesting of the Duckweed
comes into play. Ceres believes they can
overcome these obstacles and make Duckweed
viable.( reston.patch.com May 28 2011)
Bakery waste turned into alternative fuel source Fats and oils from waste pies, sausages rolls and
pastries are being extracted to make bio-diesel in
a project that is expected to be rolled out across
the UK. Road fuel supplier Greenergy has teamed
up with Brocklesby, a specialist in recycling
edible oil, to convert into biofuel misshapen and
out-of-date bakery products that would have gone
to landfill or compost.
(Continued in next column)
Bakery waste turned into alternative fuel source (Contd)
The savory products, which contain between 25%
and 30% oil and fat, are sourced from bakery
manufacturers and the oil is extracted by East
Yorkshire-based Brocklesby. It is then purified by
Greenergy and converted into biodiesel, which is
blended into the diesel supplied to petrol stations
Any food solids left after processing are dried and
then composted or used to produce energy
through anaerobic digestion, but could be used to
make biomass fuel pellets. A Greenergy
spokesperson said the company was keen to hear
from bakers interested in supplying waste
products. Greenergy is also a major shareholder in
a firm called Scarab, which produces bioethanol
from starch-rich foods such as bread and cakes.
Greenergy already uses more than 20 mio litres of
biodiesel a month from used cooking oil.
Andrew Owens, Greenergy chief executive, said:
"As oil prices continue to rise, it's important to
develop alternative sources of fuel. The quantities
of biodiesel we currently produce from solid food
waste are small, but we're expecting to scale up,
so that this soon becomes a significant proportion
of our biodiesel."(bakeryinfo.co.uk May 25 2011)
Bioplastics based on potato starch not necessarily compostable
It‘s a general assumption that bioplastics made
from potato starch can be composted. However,
that is not necessarily the case. In the picture you
see a supposedly biodegradable fork and spoon
after 60-90 days in San Francisco's commercial
composting operation.
Taterware, the manufacturer of the items in the
picture, states that its utensils are made from
GMO free potato sources. But while the material
used is purportedly a green one, Taterware itself
doesn‘t claim all its products are compostable.
(Continued on next page)
Apr/May 2011 www.giract.com Page | 22
Starch Italics Starch Industry Overview
Bio Plastics
Bioplastics based on potato starch not necessarily compostable (Contd)
They do make an ASTM D6400 compliant line,
but these are visually almost indistinguishable
from their non biodegradable varieties. As such,
it‘s easy to see why commercial composters may
be compelled to remove all utensils from the
compost stream, because even when they are
made from the same material, it‘s no guarantee
they are equally designed to break down. This
identifies the other key problem, that too many
non-biodegradable items are mis-sorted by
consumers which commercial composters cannot
recognize.( potatopro.com May 19 2011)
Plastics from algae not economic says analyst
Using algae to create bioplastics is attracting
increased attention according to a report in the
journal Bioplastics World, although the
publication points out that a number of firms in
the arena ―are sticking with starch-based futures‖.
Mark Bunger, lead analyst at Lux Research, told
the publication: ―Generally, algae are used as a
fuel source – their composition contains a lot of
oil and therefore that can be a positive from that
perspective. In terms of packaging there are
people looking at doing this, but there are issues
and I‘m not aware of companies that haven‘t
encountered issues.‖
According to Bioplastics World, Bunger is unsure
as to why companies would want to go down the
path of developing packaging from algae. From
his perspective, there are many easier ways to
make packaging and, given the nature of how
algae work, the alternatives are potentially more
valuable from a commercial sense. (Continued in
next column)
Plastics from algae not economic says analyst (Cont’d)
―The issue, as with any biomass, is you need to
convert the monomer, regardless of its source,
whether it is cellulosic or not,‖ he explained.
―Now with algae, that conversion first requires
cultivation. The cultivation is hard to do as it is
cost-intensive. You need lots of water and lots of
space and you also need lots of capital to pump
the water. ―Then, because the algae are very
dilute, you might achieve 1g of material from
1 litre of water.‖ (prw.com May 23 2011)
New Bioplastic Features Higher HDT, Impact
A Rhode Island compounder says it has improved
impact strength and heat deflection temperatures
for a major bioplastic.
As a result, the material, polylactic acid (PLA),
may become a candidate for injection-molded,
semi-durable and durable applications. The
bioplastic is also now better suited for high-end
disposable food service items such as cutlery,
coffee lids and containers for microwavable
products.
(Continued on next page)
Apr/May 2011 www.giract.com Page | 23
Starch Italics Starch Industry Overview
Bio Plastics
New Bioplastic Features Higher HDT, Impact (Contd) Teknor Apex says it has overcome an inverse
relationship between heat distortion temperature
(HDT) and Izod impact strength in PLA, creating
a new series of compounds, Terraloy BP-34001,
that provide up to two times the HDT and up to
six times the impact strength of standard
PLA resins.
Previous work to enhance PLA performance
beyond standard levels had generated resins with
either higher HDT or greater impact strength - but
not both in the same grade, according to the
Bioplastics Div. of Teknor Apex.
There are other benefits to the newly developed
PLA compound.
In comparison with previous
enhanced performance PLA resins, the new
Terraloy compounds process faster - cycle times
are 28 to 30% shorter.
Another benefit: The compounds incorporate a
larger percentage of renewably resourced content,
about 10 to 30% more. Nearly all of the new
Terraloy compounds are said to comply with
FDA requirements for food-contact applications.
"Terraloy BP-34001 Series compounds
dramatically improve the heat and impact
resistance of PLA while largely retaining the
environmental benefit of this polymer as a
bioplastic," says Edwin Tam, manager of new
strategic initiatives. "These innovative
formulations promise to expand the applicability
of PLA, making possible new uses in higher-heat
food service items as well as consumer goods."
In property tests, a typical grade in the new series,
Terraloy BP-34001D, exhibits a heat distortion
temperature of 112C and Izod impact strength of
135 J/m. (Continued in next column)
New Bioplastic Features Higher HDT, Impact (Contd)
By comparison, approximate values for standard
PLA are 65C and 33 J/m.
The new compound complies with FDA 21 CFR
requirements and has a renewable content of 78%.
The base polymers for Terraloy BP-34001
products are Ingeo resins supplied by
NatureWorks.
"Teknor Apex built upon research by
NatureWorks to develop higher-performance
PLA compounds," says Gregory J. Anderson,
Teknor Apex technical manager.
"By discovering alternative formulations and
compounding techniques, we succeeded in
eliminating a chronic property trade-off between
heat resistance and impact resistance, while
improving processability and reducing the
petrochemical content."
Tam says that the price for the PLA compound
will be greater than for standard PLA. No specific
data was available.
The Bioplastics Division of Teknor Apex is a
custom compounder of plastics derived from
renewable resources. Product families include:
hybrids that combine thermoplastic starch (TPS)
with standard petrochemical-based polymers such
as polyolefins or polystyrene; biodegradable or
compostable blends of bioplastics; recycled-
content hybrids that combine post-industrial or
post-consumer polyolefins with TPS; and
PLA based masterbatches that incorporate
additives such as impact modifier or melt strength
enhancers. (designnews.com may 10 2011)
Apr/May 2011 www.giract.com Page | 24
Starch Italics Starch Industry Overview
Regional Language News
These are the news derived from regional
publications, translated using online tools,
hence the medium quality of translation.
China Food control overweight corn for deep processing enterprises: "strictly limited" purchase
April 21st, the reporter got the information from a
deep-processing enterprise at Weifang, Shandong,
that they purchased standard corn at RMB 2260/t.
It rose by RMB 30/t as compare to last week. In
Harbin, Heilongjiang province the price of corn is
RMB 1960 ~ 4980/t, rose by RMB 20/t than last
week. The manager of Nongken North & South
Trade Company told the Daily Economic News
reporter that they have suspended acquisitions of
corn. Due to poor storage, at the end of January, related
ministries requested processing enterprises in
Northeast Chian and Jilin Province stop buying
corn. Food Bureau in Heilongjiang also asked the
processing enterprise and 70 qualified traders to
suspend the purchase. Insiders of Jilin Changchun
Dacheng company said that they also informed to
stop purchase of corn from farmers in order to
ensure that the takeover of corn reservoir, and the
tax deduction policy.
An anonymous general manager of the food
processing group said that national policy strictly
limits the development of corn processing
enterprise. Relevant statistics show that the
expected requirements of annual domestic
industrial corn demand in 2010-11 will be
increased from 11% to 29%. Also the quantity of
corn in processing will reach 5kt. Industry
analysts pointed out that as domestic demand for
food is decreasing it is necessary to restrict
this energy intensive, low output and polluting
enterprise. (feedtrade.com.cn April 22 2011)
Policy control: a rebound inhibition of deep processing of corn consumption
After the Spring Festival, there is a drastic
change in domestic corn futures market. The price
of spot corn rose sharply, The purchase price of
corn in February increased from RMB 1920-30 to
2090-2100/t, the growth rate being 8.83%. And in
northeast, the purchase price rose to a maximum
of RMB 2000/t. The author thinks that, drop in
the price of futures market is limited, with the
strong influence of intense demand in the
international market
During this year, the bank raised deposit reserve
rate at four times which resulted in short supply of
capital for the purchase and storage of corn
processing enterprises. Moreover, National
Development and Revolution Committee
requested the bank to stop providing loan to the
buyer, and urged the borrowers to sell and return
the loans.
On April 20th
, Department of Finance have
withdrawn the VAT deduction policy for corn
purchase and deep processing enterprises. So
from Apr 20th
to June 30th
, the buyer could not
issue invoices for the purchase of corn from
farmer. There is no doubt that this is the key
reason to inhibit the deep process development
and long-term adjustment in corn market. In
addition, the guys let futures market price to
adjust the pressure. (feedtrade.com.cn
April 22 2011)
Decrease of corn starch and potato starch market price: inflation continued to influence
The price of corn starch is rising slightly. In the
north east and northwest area, the price is around
RMB 3150 to 3200/t, while in southern, the main
price is 3450-3600/t. (Continued on next page)
Apr/May 2011 www.giract.com Page | 25
Starch Italics Starch Industry Overview
Regional Language News
Decrease of corn starch and potato starch market price: inflation continued to influence (Contd)
But until now, they still cannot purchase the corn
starch. Also some of the down-stream products
followed the price rise. Most of the distributors
show that there is a possibility to increase the
price, but need to take the down-stream
cooperator into consideration. In North of China
and Shandong province, the price is stable.
Different food enterprises have different points,
some of them need to sell their stock first and no
need to purchase any more as to the price of corn
without obvious change.
The potato starch market is still not good, some of
the enterprises just expect the price to be stable
and the market can be better. As to the notice of
stop the VAT deduction policy from Finance
Department on April 19, the price of corn starch
rose which made the starch market energetic.
According to the Zhuochuang News, the
production capacity of potato starch will be about
25kt in Spring season. After the bad market, the
potato starch will have the new market two weeks
later as the down-stream need buy more. Those
days, the potato market is not good, there are two
reasons, firstly, the excessive production too
much than market demand, also some factory
down regulation as to panic.
Secondly, as to the impact of bank credit-funds,
some buyers have not enough money to purchase,
also the factory sales the potato starch at small
profit to get money return. The down-stream
buyer still carry out the food safe inspection
which is influence the market accordingly.
At the points of Zhuochuang, the potato market
will be better as the buyer will have much
demand. The notice of stop the VAT deduction
policy from Finance Department on April 19,
what make the corn starch market unrest and
result in the bad potato starch market followed
hope. (Continued in next column)
Decrease of corn starch and potato starch market price: inflation continued to influence (Contd)
Some merchant at the support of corn starch,
never provide price and waiting for the cassava
starch can result in some profit. However, the
news show that some of the vermicelli is used by
ink and paraffin, what have impacted the cassava
starch market seriously. Moreover the food
quality issue always happened in difference place,
and the related department pays much attention to
do food safe quality. The cassava starch market is
not good due to less business. In Zhuochang's
opinion, as so many negative impact, this week,
the cassava starch market will be same as before,
some merchant with the pessimistic attitude for
the current market. (futures.jrj.com.cn April 24
2011)
April 26, 2011 corn pice in Heze, Shandong
April 26th
2011, the price of corn in Heze,
Shandong :
At the beginning of this week, the price of corn in
Linqing Shandong is rebounded slightly.
Following is the market details:
1. Local food grain storage listing price
RMB 2.08/kg, down RMB 0.01 from last
week/kg, bulk density is more than 700
2. Dezhou, Shandong, the price of corn is
RMB 2090/t, the products with 15% moisture
3. Local corn purchase price is around
RMB 1840-1850/t, and the corn with 15 to
16% moisture, the feed factory buy the
corn with the price of RMB 1900/t, which
with 14% moisture.
Although the policy issued to control the process
enterprises last week, in fact, there is no function
in Shandong, followed is the example: (Continued
on next page)
Apr/May 2011 www.giract.com Page | 26
Starch Italics Starch Industry Overview
Regional Language News
April 26, 2011 corn pice in Heze, Shandong (Contd)
Country Amount
(RMB/kg)
Heze,Shandong 2.08
Heze,Shandong 2.09
Heze,Shandong 1.84
Shouguang jin Corn
Co.,ltd
2.4
Xinfeng Starch Co.,ltd 2.4
Zhuchengxingmao
Co.,ltd
2.23
Binzhoujinhui Co.,ltd 2.17
Runsheng Starch
Co.,ltd
2.23
Yingxuan Alcohol
Co.,ltd
2.26
Shouguangzhonghui
Co.,ltd
2.20
Boxinxiangchi Co.,ltd 2.17
Xiwang Group Co.,ltd 2.19
Zoupinghuayi Co.,ltd 2.26
Shengtai Medicine
Co.,ltd
2.24
Dezhoufuyuan Co.,ltd 2.16
Zhonggu Starch Sugar
Co., ltd
2.12
Yangkou Wine Co.,ltd 2.18
(Continued in next column)
April 26, 2011 corn pice in Heze, Shandong (Contd)
From the weekend, the price of corn rise slightly,
what is wrong with the market. At present, the
feed factory in Guangdong purchase more corn,
but the followed production capacity is less, so
the price will be rise. While in northern region,
the market is stable. With the new policy come,
lots of food process factory with difference
purchase plan last weekend with up and down
price as followed
:
Country Amount
RMB/kg)
Shouguang jin Corn
Co.,ltd
2.4
Xinfeng Starch Co.,ltd 2.4
Zhuchengxingmao Co.,ltd 2.23
Binzhoujinhui Co.,ltd 2.17
Runsheng Starch Co.,ltd 2.23
Yingxuan Alcohol Co.,ltd 2.26
Shouguangzhonghui
Co.,ltd
2.20
Boxinxiangchi Co.,ltd 2.17
Xiwang Group Co.,ltd 2.19
Shengtai Medicine Co.,ltd 2.24
Dezhoufuyuan Co.,ltd 2.16
Zhonggu Starch Sugar Co 2.12
Yangkou Wine Co.,ltd 2.18
(Continued on next page)
Apr/May 2011 www.giract.com Page | 27
Starch Italics Starch Industry Overview
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April 26, 2011 corn pice in Heze, Shandong (Contd)
From March to April, the corn price in future
market is not stable, pure events and farmer
concentrated sales the grain make the market with
big pressure. In the same time, followed the
policy which is prevent the price from rising.
With time going, the short-term factors will be
disappeared, as the corn with the long term
shortage cannot be changed, and the price of corn
will be up.
Continue the situation of demand much than supply With the increase of the global economic, the
demand of corn will be increased. According to
the Agriculture Department of USA, latest report,
in 2010 to 2011, the global demand of corn will
be increased from 22.63 mio t to 838.32 mio.
However the production capacity just increased
2.51 mio t, it cannot meet the request market
demand, which will make the global corn stock
will down to 122.43 mio t, which is 14.6% of the
sales quantity.
While in domestic markets, although the corn
production capacity is increased in several years,
it still cannot meet the market demand, so there is
no choice but import corn from foreign country to
meet the market demand. In 2010-11, will import
200kt to 1.5 mio t corn from foreigners.
Moreover, as to the price competition in 2009-10
when sales, we have not any stock now, also the
nation regulations for the corn price will be
weakness. With the strain situation of supply and
demand of corn market, the corn harvest will very
important. At present, during the Northern
hemisphere sowing period, the market about
planting area and the weather changes theme hype
or futures market price trends will be dominated.
(Continued in next column)
April 26, 2011 corn pice in Heze, Shandong (Contd)
With the high price situation, the corn acreage
will be increased in USA and China, the weather
will have a big difference in the production
capacity. So the weather will be the key factors
for the future market of corn after the second
season. Regulation policy issued, in the short
team will be pressure for the future market price.
Frequent introduction of control policies,
short-term price pressure that period
In order to fight inflation, avoid excessive rising
commodity prices, national policy measures to
control for commodity prices, recently the typical
behavior is "interview" communicate each
industry association to stabilize prices. Of course,
and monetary policy levels of measures, such as
China's central bank has raised interest rates twice
within four times, 'reserve-requirement ratio, all is
for the recovery of excess liquidity, to avoid the occurrence of the vicious inflation.
For corn industry, also have the corresponding
policies. The latest "a seven-item corn market
regulation measures" limits the corn downstream
processing industry, including the corn
consumption this year shall not exceed the
amount of corn processing industry in 2009, speed
up and improve the productivity of eliminate
backward processing industry value-added tax
rate, etc.
April 19, the state administration of taxation
suspended some corn processing enterprise
purchase corn VAT deduction for policy of 70
days, period. A series of policies are to control
prices rise considerably, also make corn price
pressure.
However, adjustment and control policies enacted
or just short-term behavior, long-term or difficult
to change the upward trend of corn prices.
(Continued on next page)
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Starch Italics Starch Industry Overview
Regional Language News
April 26, 2011 corn pice in Heze, Shandong (Contd)
Downstream breeding to restore the corn
consumption as the largest feed raw materials,
corn prices by feed industry and breeding industry
with the influence of vigorous downturn. Early in
"lean meat fine events" under the influence of
the consumption of corn pig industry formed certain dozen strike, but the impact of these
factors have in the past.
According to understand, since mid-April, most
feed enterprise pig feeding early sales are growing
by 10-15%. Because of this, the future 1-2 months
time, the consumption demand will be great
support factors of corn future market price.
Summary, although the regulation policy issued
frequently, the supply demand factors give much
support on the corn market for a long time, also
with the limited down in short-term. The weather
impact factors and demand of breeding may result
in the corn price rise again. (nfinv.com April 26
2011)
2010 Sugarcane, cassava, cocoon production ranked first in the country
Statistics from the Guangxi Zhuang Autonomous
Region in 2010, held a news conference to
understand the economic operation, Guangxi's
sugar cane, cassava, silkworm cocoon output
ranks first in the country, while a variety of
agricultural production in the forefront of the
country.
(Continued in next column)
2010 Sugarcane, cassava, cocoon production ranked first in the country (Contd)
According to statistics, the 2010 production of
71 196kt sugarcane, cassava yield 1.732 mio t,
cocoon production of 27 mio t, accounting for
60% of national output, 70% and 33%, and ranked
first in the country.
In addition, wood, high quality rice, bananas,
oranges, longan, mango, litchi, vegetables, edible
mushrooms, herbal medicines and other
agricultural production ranked the country.
In recent years, through the full implementation of
agricultural taxes, grain, seeds, farm machinery
purchase, home appliances and a series of
subsidies and increase investment policy of
benefiting the agriculture, agricultural production
capacity in Guangxi significantly improve the
rural economy to achieve new development.
Guangxi 4 consecutive years of grain yield high,
stable output of 1400 t or more; "shopping basket"
steady growth products, meat, aquatic products
ranked first in the country for 4 years 8.
According to reports, "Twelve Five" period,
Guangxi will actively develop high-yield, high
quality, efficient, ecological and safe modern
agriculture.
Implementation of new food production capacity
planning in the construction of grain production in
15 countries and 35 autonomous counties base
counties grain resources, the implementation of
standards for grain construction, land
improvement, soil engineering, plant protection
projects, and strive to grain production capacity
by 2015 up to 1500 t.
(Continued on next page)
Apr/May 2011 www.giract.com Page | 29
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Regional Language News
2010 Sugarcane, cassava, cocoon production ranked first in the country (Contd) It will also build vegetables, fruit, livestock,
aquatic products and construction of production
bases across the Taiwan Strait (Yulin) agricultural
cooperation experimental zones and other
agricultural park, build 5 over RMB 5 bio sales
income and 20 bio over 10 leading agricultural
enterprises. (cncassava.com May 27 2011)
Russian
Bioethanol production in Kyrgyzstan
The Ministry of Economic Regulation (IEG) of
the Kyrgyz Republic held its first meeting of the
interdepartmental working group on introduction
of technology of bioethanol production in
Kyrgyzstan, created by the decree of the
Government of the Kyrgyz Republic.
As the press service of Ministry of Economic
Development of Kyrgyzstan, at a meeting of
Working Group Chair A. Aidaraliev a
presentation of global development
Bioetanolovoy technology.
Following the meeting, members of the working
group was mandated before May 1 of this year to
submit their proposals for a pilot project
"Development and introduction of obtaining
ethanol in conditions of Kyrgyzstan."
(kabar.kg/index.php April 27 2011)
Biofuels aggravates hunger
Year by year an increasing share of world
agricultural products - corn, sugar, palm oil,
cassava - diverted to produce biofuels. Developed
countries to adopt legal regulations to expand the
share of non-fossil fuel resources, while
developing giants such as China, are seeking new
sources of energy for its industries and transport,
writes the business portal with reference to the
publication in the New York Times.
But in a sharp rise in food prices in recent months,
many experts urge States to limit the activity of
the development of "green" fuels, because due to
the ambitious plans in this industry and poor
harvests in key crop ultimately increases the
number of hungry people. In February, the Food
and Agriculture Organization (FAO) has fixed the
maximum value of the food price index for
20 odd years of its existence.
True, in a recent report for the March 2011 report
on the first eight months of the index decline by
2.9%. But previously only from October to
January prices rose by 15%, resulting in another
44 million people in low and middle income
below the poverty line, according to the World
Bank.
Rise in prices of products was one of the causes of
political turmoil in some countries with low
incomes, including in Algeria, Egypt, and
Bangladesh, where, in particular, palm oil, used in
the production of biofuels is an important food
ingredient. In the second half of 2010
dramatically increased the price of corn - its rise
in the U.S. reached 73%, such a jump, according
to UN World Food Programme, partly associated
with increased turnover of maize in the
production of bioethanol.
The U.S. Congress decided that the use of
biofuels by 2022 should reach 36 bio gallons a
year (more than 160 bio liters).
(Continued on next page)
Apr/May 2011 www.giract.com Page | 30
Starch Italics Starch Industry Overview
Regional Language News
Biofuels aggravates hunger (Contd)
In the EU, stipulates that by 2020, 10% of
transport fuel should come from renewable
sources. Trust regulations on the use of biofuels
have also been established by China, India,
Indonesia, Thailand and other countries.
It is difficult to predict how the demand from the
biofuel sector will affect the supply and food
prices. In some cases, for example, cassava and
maize, the increase in commodity prices is
triggered by direct competition of its customers.
In other situations, there is scarcity and price
increase.
China has learned that almost ten years ago when
we began to produce ethanol from corn, and as a
result of this program has caused a terrible
shortage and price hike of food. In 2007 the
government banned the use of cereals in the
production of biofuels. Then the Chinese
scientists were to develop technology making
ethanol from cassava, root crops with good energy
efficiency.
As a result, several years ago opened its first plant
for its commercial production. Now this direction
is actively developed. Cultivating cassava on its
territory, China buys raw materials in addition to
Cambodia, Laos and Thailand.
Cassava, which recently has become widely used
for biofuel, is a valuable cash crop. Lands are
limited, so the more their allocated for biofuel
production, the less food. In the Asian diet, it is
not a key product, such as in Africa, although in
China, it played an important role as a food
reserve in recent years.
Therefore, China decided that the production of
biofuel from the raw material will not exert a
direct effect on food inflation or provoke a deficit,
at least on the domestic market. As a result, the
proportion of cassava used as ethanol feedstock
has increased from 10% in 2008 to 52% in 2010.
(Continued in next column)
Biofuels aggravates hunger (Contd)
Nevertheless, there may be some indirect effects.
Since cassava is also used as a forage crop,
demand from the biofuel industry could affect the
availability and cost of meat products.
Thanks to the generous Chinese purchases of
cassava in South-East Asia, it could become the
main crop, which farmers would be actively
cultivated at the expense of, for example, rice or
vegetables. In developed countries, the
development of biofuels is already having a
noticeable effect on prices and crop structure.
Thanks to government subsidies in the U.S., this
industry is actively developing, diverting nearly
40% of corn grown in the country.
Prices for this growing, and there is reason to talk
about the correlation between the quotations on
the Chicago Mercantile Exchange, which rose by
73% and, for example, prices in Rwanda, where
the corn last year increased by 19%. And if, for
Americans it means a few extra cents for a pack
of cereal for breakfast, then for the poor in other
countries may not be available the most important
products of the diet.( newsru.com April 13 2011)
Ukrainian distilleries stimulate the production of biofuels Ministry of Agricultural Policy and Food plans to
increase biofuel production in the Ukrainian
distillery in connection with the trend of rising oil
prices.
(Continued on next page)
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Ukrainian distilleries stimulate the production of biofuels (Contd)
According to head of the ministry
Prisyajnyuk Nicholas said, when the price of oil
above USD 93 a barrel, biofuel production will be
economically attractive and profitable.
The Minister said that currently 80 plants exist in
Ukraine are producing alcohol and only 25 of
them produce alcohol for beverage purposes, and
the food industry. From about 60 ideal factories,
we analyze which of them can be derived from
excise under control and, given that rising demand
for biofuels, we begin this work
N. Prisyajnyuk said that the two plants are already
running pilot projects and a further four-mounted
unit for production of biofuels. The minister also
stressed that biofuels will contribute to increase of
sugar beet.( news.infocar.ua April 13 2011)
Russia starts production of ethanol in the next two years
Russia in the next two years will start producing
ethanol, stated by Russian Agriculture Minister
Alexey Gordeev, the German-Russian Forum
"Biomass energy", held in AGROFORUM East-
West ", ITAR-TASS."Currently, in the south and
in Siberia there are several major projects to
produce bio-fuels. Through a year or two, we will
begin to produce the first 10000 t of bioethanol."
Minister of Agriculture said that the issue of
energy security is relevant not only for Russian
agriculture, but in general for the European
economy.
"In Europe the emphasis is on the production of
biodiesel in this regard, Russia is ready to become
a producer of rapeseed as raw material for
biodiesel." He added , ―We are waiting for new
technologies and investments from western
companies in Russia and are willing to negotiate
with them". (Continued in next column)
Russia starts production of ethanol in the next two years (Contd)
In turn, the presidential envoy in the Southern
Federal District Dmitry Kozak said that in the
Krasnodar Territory is planned to build a plant for
processing rapeseed as raw material for biofuel
production. The project cost is estimated at
15 mio euros. In addition, he said, Volgograd
region will have a plant for the production of
bioethanol, the total capacity of 300kt in the
project and will invest EUR 380 mio. Raw
materials will be low-grade grain. (24auto.ru May
16 2011)
Indonesian
PTPN X bioethanol plant operation schedule 2012
President Director of PT Perkebunan Nusantara
(PTPN) X, Subiyono states, it soon operate a
bioethanol plant in 2012. The plant is the result of
government cooperation Indonesia and Japan
through the New Energy and Industrial
Technology Development Organization (NEDO).
"Construction of the plant will begin in mid May
and is expected to be completed by February
2012. In sugarcane milling season of 2012,
molasses (sugar industry waste) can be processed
into bioethanol," said Subiyono, the Ministry of
Industry, Jakarta. Bioethanol factory is projected
to be able to process 100kt from 250kt of
molasses produced every year by the company to
become the alternative fuel.
"Bioethanol is produced is estimated at
100 thousand liters per day or equivalent to
30 thousand kl of fuel-grade ethanol per year.
Estimated production figures that if the ethanol
plant can produce over 300 days per year," said
Subiyono. That bioethanol factory will be built in
an integrated way with Sugar Factory
Gempolkrep Mojokerto, East Java, owned by
PTPN X. (primaironline.com April 27 2011)
Apr/May 2011 www.giract.com Page | 32
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Regional Language News
Spanish
The Brazilian government wants Petrobras controls ethanol prices Brazilian state oil company Petrobras is
expanding its role in ethanol production, said the
government, comes as the country tries to prevent
the rise in fuel prices accelerated inflation.
The Mines and Energy Minister Edison Lobao
said Petrobras would raise its stake in ethanol
producer to 15% of total production in Brazil over
the next four years, from 5%
The country currently produces 29 000 mio liters
per year of biofuel. An increase in ethanol prices
this year prompted the authorities to work on
measures to regulate the biofuel market, in an
attempt to have more control over production and
supply
In April, the government extended the minimum
of the range that can be set mandatory blending of
ethanol in gasoline and determined that the
National Agency of Petroleum, Natural Gas and
Biofuels (ANP) supervise the industry.
(minutoaminuto.com May 09 2011)
Ethanol demand falls for 1st time in 11 years
Ethanol consumption in South-Central region of
Brazil in 2011 should be 24.839 bio gallons, down
4.1% from the 25.895 bio gallons last year,
according to Bioagência, one of the major traders
in the fuel Country Retreat is the first since 2000,
when there was no flex fuel vehicles, and occurs
because the supply of ethanol is stable against a
backdrop of growing fleet of cars.
The vehicles use more gasoline consumption in
2011 and derived from oil will jump 10.4% in the
country between 2010 and this year, according to
Bioagência. Gasoline C, sold in the ranks, must
have a demand of 26.211 bio gallons this year
from 23.747 bio liters in the previous one. The
use of gas will supply, thus the bottleneck created
by the collapse of ethanol, since the total demand
of fuels in vehicles powered by gasoline and
alcohol, will reach 37.536 bio gallons, up 6.5%
compared to 2010.
According Tarcilo Rodrigues, director of
Bioagência, demand for ethanol will be controlled
by changing the use of hydrated by gasoline in
flex fuel vehicles. This occurs when the fuel price
of cane sugar is 70% charged by the gasoline at
stations, which makes use fuel oil more
economically advantageous. "For the first time
since 2000 the industry [sugarcane] is stagnant
and the supply of cane will be limited, the
adjustment of consumption must occur at the
price of fuel," said Rodrigues (brasilagro.com
May 04 2011)
Steady supply of corn price increases sufficient demand is not easy
Since late March, the domestic spot price of corn
market is basically stable, somewhat lower price
in some areas. The author believes that the current
supply and demand is relatively relaxed, corn
prices unlikely to rise sharply again.
(Continued on next page)
Apr/May 2011 www.giract.com Page | 33
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Regional Language News
Steady supply of corn price increases sufficient demand is not easy (Contd)
April is expected to stabilize the domestic price of
corn based, small correction could not be ruled
out. Northeast corn price range for the
RMB 1950-2050/t the price of corn in North
China in RMB 2050-2200/t. High corn prices
stabilized in Northeast. Due to recent frequent
rainfall in Northeast China, corn production has
decreased
However, due to difficulties in maize exports,
traders purchasing enthusiasm reduction, stop
rising market prices have been mostly stabilized.
Heilongjiang Harbin current first-class enterprise
purchase price the RMB 1980-2020 corn feed/t,
Jiamusi first-class corn deep processing
enterprises purchase price for the
RMB 1980-2020/t Jilin Changchun First corn
deep processing enterprises purchase price for the
RMB 2060-2080/t, Siping region
RMB 2040-2080/t; Liaoning Jinzhou first-class
corn deep processing enterprises purchase price
for the RMB 2120-2160/t, flat. Maize prices in
North China highs Huanghuai countries have
started to feed enterprise auction sales imperfect
grain wheat, feed corn farming enterprises
purchase high-priced slow progress, corn
procurement requirements of the market
decreased.
Early April, Hebei Shijiazhuang First corn deep
processing enterprises purchase price for the
RMB 2080/t, Qinhuangdao is RMB 2060-2080/t;
Henan Zhengzhou, first-class corn into ex-factory
RMB 2020-2060/t, Anyang area first-class
purchase price for the corn traders is
RMB 2000-20/t; with basically the same as in late
March. Shandong Weifang in first-class price for
the corn deep processing enterprises
RMB 2140 to 2180/t, Texas, area purchase price
for the first-class corn traders is
RMB 1980-2040/t, in late March were down
RMB 20/t. North Port periodic pressure corn
prices. (Continued in next column)
Steady supply of corn price increases sufficient demand is not easy (Contd)
Dalian Port First the current purchase price for the
RMB 2110-2130/t corn trade, down the middle of
March RMB 20-3/t; Dalian and Jinzhou Port are
first-class price of corn trimming
RMB 2180-2190/t, In mid-March fell more than
RMB 10 to 20/t. Shekou Port in Shenzhen First
current board distribution of corn price
RMB 2250-2260/t, was essentially flat, but prices
fall than in mid March RMB 40-50/t, the current
ship from Dalian to Shenzhen Shekou,
Hong Kong 70 per freight/t to RMB 2 180 dalian/t
trimming prices, the cost of corn-to-port
RMB 2250/t, considering the wear and tear and
other costs, North Port is still upside down corn
prices.
Expected corn price is difficult to rise in April.
Recently, the domestic corn market supply
increased, while the procurement requirements
remained stable, the market buying and selling
both the short term bullish corn market is
expected to weaken, prices of maize are expected
in April unlikely.
From the supply point of view, the amount of corn
market will continue to increase. Especially for
the northeast region, the temperature rises,
increasing the difficulty of keeping corn, common
corn farmers and small traders to sell the
enthusiasm will continue to increase. Huang-Huai
Region in North China, as a result of narrowing
the spread between the corn, Hebei, Henan,
reduce the number of corn for export, making the
local high corn prices fall, some traders will
increase sales of corn.
From the demand point of view, short-term needs
cannot effectively enlarged. First, demand for
corn feed livestock and poultry industry is still in
the recovery process, the enterprise is relatively
adequate corn stocks, and some companies have
already signed the purchase contract there, so no
hurry to fill Yongliangqiye library. (Continued on
next page)
Apr/May 2011 www.giract.com Page | 34
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Regional Language News
Steady supply of corn price increases sufficient demand is not easy (Contd)
In addition, the state enterprises on the auction
sales imperfect feed wheat, wheat instead of corn
to some extent, feed corn farming enterprises
purchase high-priced slow progress, market
purchases of corn demand has decreased. Second,
the domestic prices of downstream products of
deep processing industry down, corn processing
gains reduce the number of industrial
consumption of corn to maintain previous levels.
In late March, the domestic starch prices down
again, most of the starch producing factory price
fall than early March RMB 50 to 100/t range,
mid-fall more than RMB 2 100 to 200/t.
April seasonal domestic starch consumption in the
off-season, a corresponding reduction in market
demand, prices continued to rise does not support
the starch.(sinobcm.com May 04 2011)
Portugese
Minimum proportion of ethanol in gasoline falls
The President of the Republic, Roussef, signed an
interim measure on the proportion of ethanol in
gasoline. The MP reduces the minimum amount
to 18% against 20% previously required. The
maximum remains at 25%.
The main objective of the measure is to reduce
fuel prices. With lower insertion into gasoline,
ethanol does not increase both the value of the
derivative of petroleum. In the bargain, there is a
greater supply of alcohol at stations, which also
helps reduce the figures tabulated for the product
made from sugar cane.
(Continued in next column)
Minimum proportion of ethanol in gasoline falls (Contd)
Break, ethanol is no longer an agricultural
product, also according to the MP, to officially be
a fuel, and now under the regulatory responsibility
of the National Petroleum Agency (ANP). With
this, the body is in charge of marketing, pricing,
storage and export of the product. How is an
interim measure, the ordinance shall only last 90
days. (allthecars.wordpress.com May 03 2011)
Apr/May 2011 www.giract.com Page | 35